Motors dealers Vertu have branched out to the taxi sector in its latest acquisition.
The Gateshead-headquartered business has acquired The Taxi Centre Limited and Easy Vehicle Finance Limited based in Paisley, Scotland.
Total consideration, which includes £1.1m of goodwill, is estimated at £700,000, £200,000 of which will be settled by the issue of 343,053 ordinary shares in Vertu at 58.3p per share, with the balance settled in cash from the group’s resources.
The Taxi Centre has undertaken to Vertu not to dispose of these new shares for a period of 12 months from completion, except in certain limited circumstances.
In addition there is an earn-out arrangement in which the acquired firm will earn 20% of the pre-tax profits of the Taxi Centre over a three year period after completion.
Assets acquired include a short leasehold office property.
Established ten years ago, The Taxi Centre employs eight people and sources vehicles for private operators in the taxi sector.
Last accounts, for the year ended December 2013, showed sales of £9.7m and EBITDA of £400,000.
Robert Forrester, chief executive officer of Vertu said: “The group is confident that the acquisition of this cash generative business will produce profit enhancing synergy opportunities in the supply of new and used vehicles.
“We look forward to welcoming the experienced Taxi Centre team into the growing Vertu Group.”